Wednesday, May 4, 2011

KV Kamath,the right person for Infy?

Well, there has been a lot of discussions and articles in the news and forums,of late concerning the appointment of KV Kamath as the Chairman of the IT Bellwether, Infosys. My take on the title question is both Yes and No.You might think that am being diplomatic.But then, you can never predict any business outcome or stocks' performance beyond a certain extent even if you have a PGDM in Finance from IIM-A.Now coming back to my point, considering the performance history of the KV Kamath(after weaving the ICICI magic),one can say that he can do it.But there are some factors that questions his appointment as Chairman. Considering the top level management of Infosys, almost all of them are purely technical people and the company has run all these years under those people and it has been successful till now. The founders showed that we need not have a management degree to run and manage a company as big as Infosys,if we know the business strategies inside out.KV Kamath's ability is not being questioned here.Its evident from his qualification,engineering from NIT and MBA from IIM-A. But will he be able to study the business that an IT services company do? He has Mechanical Engineering degree and no experience of being in IT field either. Also,Infy as a company was brought up by Narayana Murthy who is known to follow more of Indian style of management and an holistic approach whereas Kamath is a person with modern ideas of managing.It suited well in ICICI case.But will it suit a company like Infy? or Will he change the outlook of Infy completely?Such questions do linger in minds of many.For Kamath,this is totally new area and a big challenge especially when the rivals are growing almost exponentially!! Only time can tell whether this decision by the top level management was right or not.

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